WELL Health Technologies Corp. (TSXV:WELL) is making patients, physicians and investors feel “WELL”

Market Data (TSXV:WELL)

Closing Price (December 12, 2018)$0.42

52 Week Range$0.25- $0.75

Market Cap $39.3M

Fully Diluted Shares Outstanding*93.6M

Free Float 66.1%

Cash** $7.7M

Total Assets*$11.6M

Total Debt* $0M

Revenue (FY2017)$0.4M

Revenue (FY2018E)$8.0M

Revenue (FY2019E)$27.0M

HeadquartersVancouver, B.C., Canada

Top Shareholders

Hamed Shahbazi19.6%

Li Ka-shing Group19.5%

PenderFund Capital Management1.7%

Dr. Michael Frankel1.5%

Peter Maclean0.8%

John Kim0.5%

Management

Hamed ShahbaziCEO & Chairman

Brian Levinkind, CPAChief Financial Officer

Dr. Michael FrankelChief Medical Officer

Alex ReadChief Operating Officer

Chris EricksenSVP, Marketing & Product Dev

Eva Fong, FCCASVP, M&A

Kenneth Cawkell, LLBIndependent Director

John Kim, CFAIndependent Director

Thomas Liston, CFAIndependent Director

Peter MacleanIndependent Director

*includes the post-acquisition shares that will be issued as per the press release on Aug 28, 2018
**cash amount will be lower in the aftermath of the closed acquisition of 13 primary healthcare clinics on Nov 1, 2018
All figures in CAD unless otherwise stated. Source: Company Reports, Thomson Reuters

Price Performance

WELL Health Technologies Corp. (TSXV:WELL)

Company Description

WELL Health Technologies Corp. (“WELL Health” or “WELL”) is a Canadabased Primary Healthcare operator and technology service provider. With a focus on innovation, the Company integrates healthcare expertise with software and technology platforms in an effort to better physician and patient experiences and health outcomes. The Company’s walk-in and family practice clinics involve over 357 health professionals, including approximately 180 physicians, who serve more than 600,000 patient visits per year.

Investment Highlights

Only pure-play Canadian name for primary and digital-enabled healthcare. The Company is capitalizing on a unique opportunity to create a disruptive platform focused on accretive M&A and profitable growth. In a large and expanding healthcare market with spending levels anticipated to reach C$242.0B or $6,604 per Canadian, WELL is leveraging an established base of 19 profitable Primary Healthcare clinics to successfully integrate digital technologies, such as Electronic Medical Records (EMR), Telemedicine and Big Data. Most recently, on November 27, 2018, WELL announced that is acquiring NerdEMR, the largest provider of open-source clinical application resource (OSCAR) EMR services to approximately 220 medical clinics in British Columbia. Previously, on November 2, 2018, WELL made a strategic investment in Circle Medical, a Silicon Valleybased full-stack primary care provider, with an aim to incorporate the Company’s mobile and AI-inspired suite of applications into its physician network. We see WELL riding on the tailwinds of these secular themes in healthcare technology in the foreseeable future.

Long-term value lies in Non-Insurable Services and IP/SaaS licensing. The Company has stated its goal to aggressively grow its Non-Insurable Services and IP/SaaS platforms to be key revenue drivers over time. NonInsurable Services is a higher-margin business vs. Insurable Services, and includes diagnostic services, health assessments and nutraceuticals. From a long-term value creation standpoint, we see the Company’s interest in licensing IP/SaaS capabilities as providing meaningful upside to the shares,to recurring revenue potential and the subsequent re-rating of the stock to a higher multiple from its current base.

Strategic Investment by Sir Li Ka-shing highlights WELL’s global market opportunity. Hong Kong business leader, Sir Li Ka-shing made an investment in the equity of WELL Health Technologies through a private placement closed in May 2018. This strategic investment by one of the world’s most prominent investors gives credibility to our constructive outlook on the Company’s shares.

Strong Management Team & Disciplined Capital Allocation. WELL Health boasts a proven management team led by Mr. Hamed Shahbazi, who founded TIO Networks (TSXV: TIO) in 1997 and transitioned it into a multi-channel payment solution provider before it was acquired by PayPal(NASDAQ: PYPL) for C$304M in July 2017. In addition, Dr. Michael Frankel, who previously joined WELL as Director of Medical Clinic Operations, has recently been appointed Chief Medical Officer. He has more than 16 years of experience in operating Primary Healthcare clinics in the Lower Mainland, which makes him a premier asset. The Company’s M&A growth strategy is predicated on buying undervalued primary healthcare platforms and incorporating synergistic digital technologies.

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